AOL Reports Revenue Growth for the First Time in 8 Years in Q4 2012

“AOL returned to growth and generated significant value for shareholders
in 2012,” said Tim Armstrong, Chairman and CEO. “AOL has strong momentum
entering 2013 and is positioned to continue on our growth path by
executing our strategy to build the next generation media and technology
company.”

Summary ResultsIn millions (except per share amounts)

Q4 2012

Q4 2011

Change

FY 2012

FY 2011

Change

Revenue

Advertising

$

410.6

$

363.8

13%

$

1,418.5

$

1,314.2

8%

Global Display

169.8

170.6

0%

575.4

573.4

0%

Search

103.6

88.4

17%

371.5

357.1

4%

AOL Properties

273.4

259.0

6%

946.9

930.5

2%

Third Party Network

137.2

104.8

31%

471.6

383.7

23%

Subscription

174.2

194.6

-10%

705.3

803.2

-12%

Other

14.7

18.4

-20%

67.9

84.7

-20%

Total revenues

$

599.5

$

576.8

4%

$

2,191.7

$

2,202.1

0%

Adjusted operating income before depreciation and amortization
(OIBDA) (1)

$

123.3

$

133.1

-7%

$

412.6

$

408.7

1%

Operating income

$

68.2

$

54.8

24%

$

1,201.9

$

45.8

NM

Net income attributable to AOL Inc.

$

35.7

$

22.8

57%

$

1,048.4

$

13.1

NM

Diluted EPS

$

0.41

$

0.23

78%

$

11.21

$

0.12

NM

Cash provided by operating activities

$

76.7

$

99.6

-23%

$

365.6

$

296.0

24%

Free Cash Flow (1)

$

46.3

$

72.6

-36%

$

245.1

$

164.7

49%

(1) See Page 10 for a reconciliation of Adjusted OIBDA and Free Cash
Flow to the GAAP financial measures the Company considers most
comparable.

KEY QUARTERLY TRENDS

Consolidated Revenue Trends:

Q4 revenue grew year-over-year for the first quarter in 8 years driven
by global advertising revenue growth.

Global advertising revenue grew 13% year-over-year reflecting:

31% growth in third party network revenue.

17% growth in search revenue (formerly named “search &
contextual”).

Flat global display revenue, with a 3% decline in domestic display
revenue offset by continued growth in international display
revenue.

Subscription revenue declined 10% year-over-year and monthly average
churn was 1.8% in Q4 2012 compared to an 18% decline year-over-year in
revenue and 2.2% monthly average churn in Q4 2011.

Consolidated Profitability Trends:

AOL amended its definition of Adjusted OIBDA in Q4 2012 to exclude
significant special items that we do not believe are indicative of our
core operating performance. These special items may positively or
negatively skew analysis of our operating results in a given period.
In 2012, these special items included income and expenses related to
the patent transaction as well as expenses incurred related to the
proxy contest.

Q4 2012 Adjusted OIBDA of $123.3 million excluded $13.3 million of
special items including $7.1 million of patent sale and license costs,
primarily related to a special year-end employee bonus related to the
patent transaction, and costs associated with the acquisition of
Buysight of $5.1 million. $11 million of these special items are
recorded in cost of revenues and $2 million are recorded as general
and administrative expenses.

Cost of revenues increased $29.9 million year-over-year driven by a
25%, or $20.8 million, increase in Traffic Acquisition Costs (TAC)
related to 37% growth in AOL Networks (as described below) revenue and
increased TAC related to our search marketing initiatives. Cost of
revenue increases also reflect the impact of the special items
discussed above and were partially offset by lower network related
expenses.

General and administrative expenses grew $5.5 million in Q4 2012
versus the prior year period, which included an $8.5 million legal
settlement. The increase in expenses year-over-year primarily reflects
a $12 million increase in marketing expense related to the production
of a number of brand campaigns across the business and brand portfolio
domestically and internationally, some of which are expected to run in
2013.

Operating income grew year-over-year reflecting a $16.4 million
increase to the original gain on the sale of our legacy access
businesses in the UK and Germany, due to the release of a VAT
indemnification reserve. The increase to the gain on sale had no
impact on AOL’s cash flows as there was no payment made in connection
with the release.

Asset, Cash & Cash Flow Trends:

In Q4 2012, AOL reduced its shares of common stock outstanding by an
additional 14.4 million shares due to shares delivered by Barclays
under the Accelerated Stock Repurchase agreement. At December 31,
2012, AOL had 76.6 million common shares outstanding, down 19% from
December 31, 2011.

On December 14th, AOL paid a special cash dividend of $5.15
per share to shareholders of record at the close of business on
December 5th, completing its commitment to return $1.1
billion to shareholders in 2012.

AOL had $466.6 million of cash and equivalents at December 31, 2012.
Q4 cash provided by operating activities and Free Cash Flow were $76.7
million and $46.3 million, down year-over-year reflecting the timing
of collections of receivables, increased marketing expenditures,
acquisition related bonus and retention payments and the payment of a
special year-end employee bonus as a result of the patent transaction.

AOL’s Board of Directors announced it authorized the Company to
repurchase up to $100 million of its common stock from time-to-time
over the course of the next twelve months depending on market
conditions, stock price and other factors.

DISCUSSION OF SEGMENT RESULTS

In Q4 2012, AOL began to manage its business on a segmented basis, and
therefore is presenting financial information for Q4 2012 and historical
periods on the same basis as that reviewed by our management. Our
segments are defined by the products and services they provide and by
how we evaluate our business. The following are AOL’s reportable
segments:

The Brand Group, which consists of the majority of AOL's
portfolio of distinct and unique content and service brands. The
results for this segment include advertising offerings on a number of
owned and operated sites, such as AOL.com, the Huffington Post, Patch,
TechCrunch and MapQuest.

The Membership Group, which consists of offerings that serve
AOL’s registered account holders, both free and paid, and are focused
on delivering world-class experiences to AOL’s loyal users who rely on
these AOL products and properties every day. The results for this
segment include AOL’s subscription offerings and advertising offerings
on Membership Group properties, such as AOL Mail, as well as from
performance compensation for marketing third party products and
services.

AOL Networks, which consists of AOL's offerings to publishers
and advertisers utilizing AOL’s Third Party Network as well as AOL
Properties inventory sold by AOL Networks. The results for this
segment include Advertising.com, ADTECH, Pictela, goviral and AOL On.

Additionally, AOL has a corporate and other category that includes
activities that are not directly attributable or allocable to a specific
segment. This category primarily consists of costs associated with broad
corporate functions including legal, human resources, finance and
accounting, and activities not directly attributable to a segment such
as AOL Ventures, restructuring costs, tax settlements and other general
business costs. In 2012, the corporate and other category also includes
income from the sale and licensing of patents of $1,042 million (net of
transaction costs) and patent and proxy contest expenses of $15.7
million and $8.9 million, respectively. In 2010, this category includes
the $1,414.4 million goodwill impairment charge.

The following table highlights the significant products or services
included in each segment:

Brand Group

Membership Group

AOL Networks

Corporate & Other

AOL.com

AIM

ADTECH

Global business support costs

AOL Autos

AOL Mail

Advertising.com

Non-core operations

AOL Music

Subscription Services

AOL On

AOL Ventures

DailyFinance

Related search revenue

goviral

Engadget

Other

Pictela

Games.com

Sponsored Listings

Huff Post Live

Other

Huffington Post

KitchenDaily

MapQuest

Moviefone

Patch

Heidi Klum

Patch

StyleList

TechCrunch

Related search revenue

Other Content Brands

DISCUSSION OF SEGMENT RESULTS

Q4'12

Q4'11

Change

(In millions)

Revenue

Brand Group

213.2

205.5

4%

Membership Group

230.8

254.0

-9%

AOL Networks

183.5

134.4

37%

Corporate & Other

0.3

1.2

-75%

Intersegment eliminations

(28.3

)

(18.3

)

-55%

Total Revenue

$

599.5

$

576.8

4%

Adjusted OIBDA

Brand Group

8.8

13.4

-34%

Membership Group

158.7

176.7

-10%

AOL Networks

6.4

(10.7

)

NM

Corporate & Other

(50.6

)

(46.3

)

-9%

Total Adjusted OIBDA

$

123.3

$

133.1

-7%

Brand Group

Brand Group revenue reflects continued growth in search revenue and
international display revenue, which offsets a slight decline in
domestic display revenue. Search advertising revenue grew 20%
year-over-year driven by continued growth in revenue per search on
AOL.com through the optimization of the consumer experience and by
increased queries from marketing related efforts. Search revenue growth
on AOL.com more than offset a decline in queries from cobranded portals.
International display revenue in our Brand Group grew strongly driven by
continued growth in Canada and the UK, but was offset by domestic
display revenue declines primarily due to an increase in inventory sold
through Advertising.com. Domestic display declines were partially offset
by growth in reserved pricing and continued growth in the sale of video
and Patch inventory. Under our segment reporting structure, Brand Group
inventory sold through AOL Networks is recognized in AOL Networks with a
corresponding intersegment TAC charge. An amount equal to the TAC
charge, reflecting the revenue net of the margin retained by AOL
Networks, is then reflected as intersegment revenue within the Brand
Group.

Brand Group Adjusted OIBDA declined versus the prior year period,
primarily reflecting increased investment in our editorial staff
domestically and internationally, an increase in the number of front
line sales representatives, particularly in video, and increased
marketing expenses. These declines were partially offset by the growth
in revenue discussed above and lower year-over-year Patch expenses.

Membership Group

Membership Group revenue reflects a 10% decline in subscription revenue
driven by 15% fewer domestic AOL-brand access subscribers
year-over-year. Subscription revenue year-over-year declines remained
near multi-year lows due to a continued historically low churn rate of
1.8% and 8% year-over-year growth in domestic average monthly revenue
per AOL-brand access subscriber (ARPU). Subscription revenue grew
sequentially due to 4% growth in ARPU versus Q3 2012. ARPU growth
continues to reflect the impact of an ongoing price rationalization
program and continued improvement in our retention efforts. Membership
Group revenue declines also reflect fewer reserved impressions sold,
primarily on AOL Mail, and a shift in the sale of those impressions

to Advertising.com. As is the case in the Brand Group, this revenue is
recognized net of the margin retained by AOL Networks. Membership Group
advertising revenue declines were partially offset by growth in search
revenue.

Membership Group Adjusted OIBDA declines primarily reflect the decline
in subscribers during the quarter.

AOL Networks

AOL Networks revenue increased 37% versus the prior year period, driven
by 31% growth in Third Party Network revenue, which included $9.2
million in advertising revenue sold by Ad.com Japan (AOL began
consolidating Ad.com Japan in Q1 2012). Third Party Network revenue
reflects revenue from the sale of inventory from third party properties
through Advertising.com and its growth continues to be driven by an
increasing number of publishers and advertisers on the network as well
as increased sales of premium packages and products. AOL Networks
revenue growth also reflects an 88% increase in the sale of AOL
Properties inventory sold through Advertising.com.

As a result of the growth in revenues, AOL Networks related TAC
increased by 29% as compared to the prior year period. The increase in
revenues net of TAC was a significant driver in the improvement of AOL
Networks Adjusted OIBDA versus the prior year period. Other factors
impacting AOL Networks Adjusted OIBDA included a decline in retention
compensation expenses and increased year-over-year investment in higher
growth areas, particularly in technology and personnel as we continue to
build out the capabilities of our technology stack.

Corporate & Other

Corporate & Other Adjusted OIBDA decreased versus the prior year period
due to increases in personnel expenses related to 2012 performance
bonuses and increased marketing costs versus the prior year period,
largely offset by continued expense reduction initiatives.

CIO, CTO & Developer Resources

Tax

AOL had Q4 2012 pre-tax income of $67.1 million and income tax expense
of $31.7 million, resulting in an effective tax rate of 47.2%. This
compares to an effective tax rate of 57.7% for Q4 2011. The effective
tax rate for Q4 2012 differed substantially from the statutory U.S.
federal income tax rate of 35.0% primarily due to the impact of foreign
losses that did not produce a tax benefit and the impact of changes in
state tax rates and apportionment on AOL’s deferred tax assets. The
effective tax rate in Q4 2011 differed from the statutory U.S. federal
income tax rate due to the size of foreign losses relative to AOL’s
pre-tax income and the unfavorable impact of restricted stock unit
vesting in Q4 2011.

Cash Flow

Q4 2012 cash provided by operating activities was $76.7 million, while
Free Cash Flow was $46.3 million, both declining year-over-year
reflecting timing of receivable collections, increased marketing
expenditures, acquisition-related bonus and retention payments in Q4
2012 and the Q4 2012 payment of a special year-end employee bonus as a
result of the patent transaction.

CONSOLIDATED OPERATING METRICS

Q4 2012

Q4 2011

Y/Y Change

Q3 2012

Q/Q Change

Subscriber Information

Domestic AOL-brand access subscribers (in thousands) (1)

2,794

3,272

-15

%

2,893

-3

%

ARPU (1)

$

19.27

$

17.87

8

%

$

18.47

4

%

Domestic AOL-brand access subscriber monthly average churn (2)

1.8

%

2.2

%

-18

%

1.8

%

0

%

Unique Visitors (in millions) (3)

Domestic average monthly unique visitors to AOL Properties

113

107

6

%

111

2

%

Domestic average monthly unique visitors to AOL Advertising Network

187

187

0

%

186

1

%

(1)

Domestic AOL-brand access subscribers include subscribers
participating in introductory free-trial periods and subscribers
that are paying no monthly fees or reduced monthly fees through
member service and retention programs. Individuals who are only
registered for our free offerings, including subscribers who have
migrated from paid subscription plans, are not included in the
AOL-brand access subscriber numbers presented above. ARPU is
calculated as average monthly subscription revenue divided by the
average monthly subscribers for the applicable period.

(2)

Churn represents the percentage of subscribers that are either
terminated or cancel our services, factoring in new and
reactivated subscribers. Monthly average churn is calculated as
the monthly average number of terminations plus cancellations
divided by the initial subscriber base plus any new registrations
and reactivations for the applicable period.

(3)

See “Unique Visitor Metrics” on page 11 of this press release.

Webcast and Conference Call Information

AOL Inc. will host a conference call to discuss fourth quarter 2012
financial results on Friday, February 8, 2013, at 8:00 am ET. To access
the call, parties in the United States and Canada should call toll-free
(877) 556.5921 and other international parties should call (617)
597.5474. Additionally, a live webcast of the conference call, together
with supplemental financial information, can be accessed through the
Company's Investor Relations website athttp://ir.aol.com.
In addition, an archive of the webcast can be accessed through the link
above for one year following the conference call, and an audio replay of
the call will be available for two weeks following the conference call
by calling (888) 286.8010 and other international parties should call
(617) 801.6888. The access code for the replay is 28455276.

These amounts relate to incentive cash compensation
arrangements with employees of acquired companies made at the time
of acquisition. Incentive compensation amounts are recorded as
retention compensation expense over the future service period of
the employees of the acquired companies.

Items impacting comparability: The following table represents
certain items that impacted the comparability of net income attributable
to AOL Inc. for the three and twelve months ended December 31, 2012 and
2011 (In millions, except per share amounts):

Three Months EndedDecember 31,

Years EndedDecember 31,

2012

2011

2012

2011

Restructuring costs

$

(2.4

)

$

(2.8

)

$

(10.1

)

$

(38.3

)

Equity-based compensation expense

(11.2

)

(10.8

)

(39.5

)

(42.5

)

Asset impairments and write-offs

(3.1

)

(2.5

)

(6.1

)

(7.6

)

Gain (loss) on disposal of assets, net (1)

17.6

0.6

964.2

(0.4

)

Costs related to proxy contest

(0.1

)

–

(8.9

)

–

Costs related to patent sale and return of proceeds to shareholders

(7.1

)

–

(15.7

)

–

Income from licensing of intellectual property

–

–

96.0

–

Tax, legal and other settlements

(1.0

)

(8.5

)

(8.6

)

(8.5

)

Acquisition-related costs (2)

(5.1

)

–

(5.1

)

(12.0

)

Gain on consolidation of Ad.com Japan (3)

–

–

10.8

–

Retention compensation expense related to acquired companies (4)

(2.7

)

(6.3

)

(12.3

)

(35.2

)

Other items impacting comparability

–

–

–

(0.7

)

Pre-tax impact

(15.1

)

(30.3

)

964.7

(145.2

)

Income tax impact (5)

2.5

10.1

(46.3

)

48.3

After-tax impact

(12.6

)

(20.2

)

918.4

(96.9

)

Income tax benefit related to worthless stock deduction

–

–

–

7.1

After-tax impact of items impacting comparability of net income

$

(12.6

)

$

(20.2

)

$

918.4

$

(89.8

)

Impact per basic common share

$

(0.15

)

$

(0.21

)

$

10.08

$

(0.86

)

Impact per diluted common share

$

(0.14

)

$

(0.20

)

$

9.82

$

(0.85

)

Effective tax rate (6)

39.2

%

39.0

%

39.2

%

39.0

%

(1)

Gain on disposal of assets for the three months ended December 31,
2012 relates primarily to the release of a VAT indemnification
liability reserve associated with the sales of our German and UK
access businesses in 2006 and 2007. The statute of limitations on
this indemnification expired on December 31, 2012. For the twelve
months ended December 31, 2012, gain on disposal of assets also
includes the gain on the sale of the patents of $946.1 million in
the second quarter of 2012.

(2)

Acquisition-related costs for the three and twelve months ended
December 31, 2012 includes approximately $4.7 million related to a
bonus paid to employees of an acquired company and accounted for as
compensation expense.

(3)

During the three months ended March 31, 2012, AOL purchased an
additional interest in a joint venture, Ad.com Japan, and gained
control of the board and day-to-day operations of the joint venture.
As a result, beginning in February 2012, AOL consolidated the
results of Ad.com Japan and upon closing of the transaction, AOL
recorded a noncash gain of approximately $10.8 million related to
our pre-existing investment in Ad.com Japan.

(4)

These amounts relate to incentive cash compensation arrangements
with employees of acquired companies made at the time of
acquisition. Incentive compensation amounts are recorded as
retention compensation expense over the future service period of the
employees of the acquired companies. For tax purposes, a portion of
these costs are treated as additional basis in the acquired entity
and are not deductible until disposition of the acquired entity.

(5)

The income tax impact for the gain on consolidation of Ad.com Japan,
licensing of intellectual property and gain on sale of patents is
calculated by using the actual tax expense for the transactions. The
income tax impact for all remaining items is calculated by applying
the normalized annual effective tax rate to deductible items. Items
that are not deductible include a portion of the retention
compensation expense, discussed above.

(6)

For the three and twelve months ended December 31, 2012 and 2011,
the effective tax rates were calculated based on AOL's normalized
annual effective tax rates for 2012 and 2011, respectively.

AOL Inc.Reconciliation of Adjusted OIBDA to
Operating Income and Free Cash Flow to Cash Provided by Operating
Activities(In millions)

Three Months Ended December 31,

Years Ended December 31,

2012

2011

2012

2011

Operating income

$

68.2

$

54.8

$

1,201.9

$

45.8

Add: Depreciation

33.1

35.8

138.7

160.9

Add: Amortization of intangible assets

9.6

18.5

38.2

92.0

Add: Restructuring costs

2.4

2.8

10.1

38.3

Add: Equity-based compensation

11.2

10.8

39.5

42.5

Add: Asset impairments and write-offs

3.1

2.5

6.1

7.6

Add: Losses/(gains) on disposal of assets, net

(17.6

)

(0.6

)

(964.2

)

0.4

Add: Special items (1)

13.3

8.5

(57.7

)

21.2

Adjusted OIBDA

$

123.3

$

133.1

$

412.6

$

408.7

Cash provided by operating activities

$

76.7

$

99.6

$

365.6

$

296.0

Less: Capital expenditures and product development costs

15.9

14.4

64.9

82.3

Less: Principal payments on capital leases

14.5

12.6

55.6

49.0

Free Cash Flow

$

46.3

$

72.6

$

245.1

$

164.7

(1)

Special items for the three months ended December 31, 2012 include
costs related to the patent sale of $7.1 million (including a
year-end employee bonus as a result of the patent transaction) and
acquisition-related costs of $5.1 million. Special items for the
twelve months ended December 31, 2012 also include patent licensing
income of $96.0 million and additional costs related to the patent
sale of $8.6 million, as well as proxy contest costs of $8.9 million
and the Virginia tax settlement of $7.6 million. Special items for
the three months ended December 31, 2011 relate to a legal
settlement, and special items for the twelve months ended December
31, 2011 also include acquisition-related costs of $12.0 million.

Note Regarding Non-GAAP Financial Measures

This press release and its attachments include the financial measures
Adjusted OIBDA and Free Cash Flow, both of which are defined as non-GAAP
financial measures by the Securities and Exchange Commission (SEC).
These measures may be different than similarly-titled non-GAAP financial
measures used by other companies. The presentation of this financial
information is not intended to be considered in isolation or as a
substitute for the financial information prepared and presented in
accordance with generally accepted accounting principles (GAAP).
Explanations of our non-GAAP financial measures are as follows:

Adjusted OIBDA. We define Adjusted OIBDA as
operating income before depreciation and amortization excluding the
impact of restructuring costs, noncash equity-based compensation, gains
and losses on all disposals of assets (including those recorded in costs
of revenues), noncash asset impairments and write-offs and special
items. We consider Adjusted OIBDA to be a useful metric for management
and investors to evaluate and compare the ongoing operating performance
of our business on a consistent basis across reporting periods, as it
eliminates the effect of noncash items such as depreciation of tangible
assets, amortization of intangible assets that were primarily recognized
in business combinations, asset impairments and write-offs, as well as
the effect of restructurings, gains and losses on asset sales and
special items, which we do not believe are indicative of our core
operating performance. We exclude the impacts of equity-based
compensation to allow us to be more closely aligned with the industry
and analyst community. A limitation of this measure, however, is that it
does not reflect the periodic costs of certain capitalized tangible and
intangible assets used in generating revenues in our business or the
current or future expected cash expenditures for restructuring costs.
The Adjusted OIBDA measure also does not include equity-based
compensation, which is and will remain a key element of our overall
long-term compensation package. Moreover, the Adjusted OIBDA measures do
not reflect gains and losses on asset sales, impairment charges and
write-offs related to goodwill, intangible assets and fixed assets or
special items which impact our operating performance. We evaluate the
investments in such tangible and intangible assets through other
financial measures, such as capital expenditure budgets, investment
spending levels and return on capital.

Free Cash Flow. We define Free Cash Flow as cash provided
by operating activities, less capital expenditures, product development
costs and principal payments on capital leases. We consider Free Cash
Flow to be a liquidity measure that provides useful information to
management and investors about the amount of cash generated by the
business that, after capital expenditures, capitalized product
development costs and principal payments on capital leases, can be used
for strategic opportunities, including investing in our business, making
strategic acquisitions, and strengthening the balance sheet. Analysis of
Free Cash Flow also facilitates management's comparisons of our
operating results to competitors' operating results. A limitation on the
use of this metric is that Free Cash Flow does not represent the total
increase or decrease in cash for the period because it excludes certain
non-operating cash flows.

Unique Visitor Metrics

We utilize unique visitor numbers to evaluate the performance of AOL
Properties. In addition, we utilize unique visitor numbers to evaluate
the reach of the AOL Advertising Network, which includes both AOL
Properties and the Third Party Network. Unique visitor numbers provide
an indication of our consumer reach. Although our consumer reach does
not correlate directly to advertising revenue, we believe that our
ability to broadly reach diverse demographic and geographic audiences is
attractive to brand advertisers seeking to promote their brands to a
variety of consumers without having to partner with multiple content
providers. The source for our unique visitor information is a third
party (comScore Media Metrix, or “Media Metrix”). While we are familiar
with the general methodologies and processes that Media Metrix uses in
estimating unique visitors, we have not performed independent testing or
validation of Media Metrix’s data collection systems or proprietary
statistical models, and therefore we can provide no assurance as to the
accuracy of the information that Media Metrix provides.

Cautionary Statement Concerning Forward-Looking Statements

This press release and our conference call at 8:00 a.m. Eastern Time
today may contain “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995 regarding business
strategies, market potential, future financial and operational
performance and other matters. Words such as “anticipates,” “estimates,”
“expects,” “projects,” “forecasts,” “intends,” “plans,” “will,”
“believes” and words and terms of similar substance used in connection
with any discussion of future operating or financial performance
identify forward-looking statements. These forward-looking statements
are based on management’s current expectations and beliefs about future
events. As with any projection or forecast, they are inherently
susceptible to uncertainty and changes in circumstances. Except as
required by law, we are under no obligation to, and expressly disclaim
any obligation to, update or alter any forward-looking statements
whether as a result of such changes, new information, subsequent events
or otherwise. Various factors could adversely affect our operations,
business or financial results in the future and cause our actual results
to differ materially from those contained in the forward-looking
statements, including those factors discussed in detail in the “Risk
Factors” section contained in our Annual Report on Form 10-K for the
year ended December 31, 2011 (the “Annual Report”), filed with the
Securities and Exchange Commission. In addition, we operate a web
services company in a highly competitive, rapidly changing and consumer-
and technology-driven industry. This industry is affected by government
regulation, economic, strategic, political and social conditions,
consumer response to new and existing products and services,
technological developments and, particularly in view of new
technologies, the continued ability to protect intellectual property
rights. Our actual results could differ materially from management’s
expectations because of changes in such factors. Achieving our business
and financial objectives, including improved financial results and
maintenance of a strong balance sheet and liquidity position, could be
adversely affected by the factors discussed or referenced under the
“Risk Factors” section contained in the Annual Report as well as, among
other things: 1) changes in our plans, strategies and intentions; 2)
potential fluctuation in market valuations associated with our cash
flows and revenues; 3) the impact of significant acquisitions,
dispositions and other similar transactions; 4) our ability to attract
and retain key employees; 5) any negative unintended consequences of
cost reductions, restructuring actions or similar efforts, including
with respect to any associated savings, charges or other amounts; 6)
market adoption of new products and services; 7) our ability to attract
and retain unique visitors to our properties; 8) asset impairments; and
9) the impact of “cyber-warfare” or terrorist acts and hostilities.

About AOL

AOL Inc. (NYSE: AOL) is a brand company, committed to continuously
innovating, growing, and investing in brands and experiences that
inform, entertain, and connect the world. The home of a world-class
collection of premium brands, AOL creates original content that engages
audiences on a local and global scale. We help marketers connect with
these audiences through effective and engaging digital advertising
solutions.

For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space.
In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...

SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.

The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.

Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy.
How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...

MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs.
The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.

Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world.
Get ready to learn the facts:
Is there a bias against women in the tech / developer communities?
Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions?
Some beginnings of what to do about it!
In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...

In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.

The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional?
In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.

Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting.
In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect their organization.

It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed.
In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.

Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years.
In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.

There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.

Akana has released Envision, an enhanced API analytics platform that helps enterprises mine critical insights across their digital eco-systems, understand their customers and partners and offer value-added personalized services.
“In today’s digital economy, data-driven insights are proving to be a key differentiator for businesses. Understanding the data that is being tunneled through their APIs and how it can be used to optimize their business and operations is of paramount importance,” said Alistair Farquharson, CTO of Akana.

Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.

The enterprise market will drive IoT device adoption over the next five years.
In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, analyzed how companies will adopt IoT products and the associated cost of adopting those products.
John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI Intelligence, he worked analyzing bank technology for Corporate Insight and The Clearing House Payment...

"Optimal Design is a technology integration and product development firm that specializes in connecting devices to the cloud," stated Joe Wascow, Co-Founder & CMO of Optimal Design, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.

SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks. CommVault's exclusive single-platform architecture gives companies unp...

Electric Cloud and Arynga have announced a product integration partnership that will bring Continuous Delivery solutions to the automotive Internet-of-Things (IoT) market. The joint solution will help automotive manufacturers, OEMs and system integrators adopt DevOps automation and Continuous Delivery practices that reduce software build and release cycle times within the complex and specific parameters of embedded and IoT software systems.

"ciqada is a combined platform of hardware modules and server products that lets people take their existing devices or new devices and lets them be accessible over the Internet for their users," noted Geoff Engelstein of ciqada, a division of Mars International, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.

Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.

The Internet of Things (IoT) has quickly become the next “be all to end all” in information technology. Touted as how cloud computing will connect everyday things together, it is also feared as the real- life instantiation of The Terminator’s Skynet, where sentient robot team with an omnipresent and all-knowing entity that uses technology to control, and ultimately destroy, all of humanity.

As a recent graduate, and now professor in the University of Connecticut's Business Analytics and Project Management masters program, I have a lot of conversations surrounding the topic of "Big Data" and questions such as, "What does that term actually mean?"
Big Data is a fairly new topic and what seems to be an elusive term for many. Conversations are important to help bring clarity to Big Data, as well as generate ideas about how we can shape, not only what it is, but also the future of where it's going.

Knowledge management, in business terms, refers to saving, developing, sharing, and effectively using knowledge for the benefit of organization. It refers to a multi-disciplined approach of achieving organizational objectives by making the best use of knowledge.
Scientia potentia est (Latin proverb meaning "knowledge is power") attributed to 16th century philosopher Sir Francis Bacon is nowadays more valid than ever. Knowledge is power and knowledge management is the key to success.
Knowledge management, in business terms, refers to saving, developing, sharing, and effectively using knowledg...

It is interesting to me, how quickly the hype cycle of a good thing can turn it into a monster that will inevitably eat itself, leaving a much smaller – and much more useful – concept or toolset behind. It has happened over and over in high tech, one need only say “XML” to understand what I mean. It is definitely a useful tool for some jobs, but the “XML Everywhere” craze was insane. People declaring such patently false ideas as “It will end the need for programmers.”

As companies embrace the DevOps movement, they rely heavily on automation to improve the time to market for new features and services. DevOps is a long, never-ending journey with a goal of continuously improving the software delivery process, resulting in better products and services and, ultimately, happier customers. At the beginning of their DevOps journeys, many companies focus on continuous integration (CI), in which they automate the build process. Automated testing is implemented so that builds will fail if any changes fail the baseline tests. The idea here is to never move bugs forward...

We Need a Holistic Network Infrastructure: Why Controllers Are Not Cutting It
For years, we've relied too heavily on individual network functions or simplistic cloud controllers. However, they are no longer enough for today's modern cloud data center. Businesses need a comprehensive platform architecture in order to deliver a complete networking suite for IoT environment based on OpenStack.
In his session at @ThingsExpo, Dhiraj Sehgal from PLUMgrid discussed what a holistic networking solution should really entail, and how to build a complete platform that is scalable, secure, agile and auto...

Microsoft has announced the long-awaited launch of Windows 10, scheduled to be the iconic platform’s last numbered version. By all estimations, Windows 10 will give modern IT users everything they want, wherever and whenever they need it. The one operating system, on the surface at least, addresses all kinds of devices – from PCs and smartphones to even game consoles.
For Microsoft, Windows 10 is not just another update; it promises a wholly new user experience. Seamlessness is an important theme to recognize, a vital force in an era when employees demand more flexibility in working environme...

"To us DevOps is actually a movement that at the very center is about developers and IT operations teams collaborating in a framework that drives agility, drives the ideation to production readiness in a seamless manner," explained Monish Sharma, Director in PwC's consulting business, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.

Alibaba, the world’s largest ecommerce provider, has pumped over a $1 billion into its subsidiary, Aliya, a cloud services provider. This is perhaps one of the biggest moments in the global Cloud Wars that signals the entry of China into the main arena. Here is why this matters.
The cloud industry worldwide is being propelled into fast growth by tremendous demand for cloud computing services. Cloud, which is highly scalable and offers low investment and high computational capabilities to end users by eliminating the need to buy costly infrastructure and instead rent it from cloud providers, i...

Traditionally IT has been seen as a cost center with nothing but a cost associated with enabling, supporting and maintaining anything IT. IT on the other hand is an integral part of today’s enterprise that often does not have a replacement. IT can however be turned into a powerful profit center. IT can be empowered by giving it tools and mechanisms to enable chargebacks to work as an independent entity within an enterprise and offer services to its stakeholders. Powered by Solgenia’s revolutionary Cloud Monetization platform Powua, Enterprise IT can now create chargebacks to the granularity of...

The OpenStack cloud operating system includes Trove, a database abstraction layer. Rather than applications connecting directly to a specific type of database, they connect to Trove, which in turn connects to one or more specific databases. One target database is Postgres Plus Cloud Database, which includes its own RESTful API. Trove was originally developed around MySQL, whose interfaces are significantly less complicated than those of the Postgres cloud database.
In his session at 16th Cloud Expo, Fred Dalrymple, product manager for EnterpriseDB's Postgres Plus Cloud Database, addressed th...

It’s time to talk more vociferously about open data.
A better headline for this piece would be: why open data is not an overnight sensation or indeed a turn of a dial or a flick of a switch, i.e., it is not something automatically achieved without some kind of longer term strategic drive, which, in itself, typically needs to be driven by a defined longer term strategic need.

One of the ways to increase scalability of services – and applications – is to go “stateless.” The reasons for this are many, but in general by eliminating the mapping between a single client and a single app or service instance you eliminate the need for resources to manage state in the app (overhead) and improve the distributability (I can make up words if I want) of requests across a pool of instances. The latter occurs because sessions don’t need to hang out and consume resources that could be used to serve other requests. Distribution should, in theory, be more even and enable better pred...

Business Cloud News recently tied up with Sharp Document Solutions to interview more than 715 enterprise IT professionals from across the world for their study on cloud based collaboration. The objective of the study was to look at the level of proliferation of cloud tools in the enterprise setup of today and also to understand the factors that may be challenging this unbridled growth.

Cloud computing budgets worldwide are reaching into the hundreds of billions of dollars, and no organization can survive long without some sort of cloud migration strategy. Each month brings new announcements, use cases, and success stories.